Operational Cost Reduction at Wimm-Bill-Dann:

From focused to continual improvement

Excess waste, equipment stoppages, product changes and cleaning setup time are all classic factors contributing to reduced productivity and unnecessary costs. With Operational Cost Reduction (OCR), Tetra Pak takes a focused, effective and structured approach to reducing the operational costs associated with running a packaging line. At Wimm-Bill-Dann, a pilot OCR project, implemented in 2007, reduced costs by more than 12 per cent. Success called for further expansion in 2008.

Wimm-Bill-Dann is one of Tetra Pak’s largest customers globally and one of the market leaders within the Russian dairy and beverage industry. When new management at Wimm-Bill-Dann called for increased efficiency of the production lines, Tetra Pak introduced the OCR concept. The concept is based on the World Class Manufacturing methodology, allowing Tetra Pak and the customer to work closely together to minimise any costs directly linked to production.

Led to improvements
In 2007 Wimm-Bill-Dann chose a Tetra Pak A3/Flex 2000S line at Ramenskoye juice manufacturing facility for the initial implementation of the OCR project. The audit mapped the full operational cost structure of the line. The result was a clear savings potential and a list of prioritised improvements based on operational cost impact. In total, the joint efforts of dedicated teams from Wimm-Bill-Dann and Tetra Pak led to improvement of the Overall Equipment Effectiveness (OEE) by 15 per cent and a 12.7 per cent reduction of operational costs. In 2008 the OCR project expanded to an additional two Tetra Brik Aseptic TBA/21-TPA1000Sq and two TBA/21 TBA1000S packaging lines.

Foru priority areas
In the second project the customer took the initiative and successfully implemented the project. It focused on four priority areas and advanced training for the Wimm-Bill-Dann production staff. The project team was divided into four main groups. The first group focused on reduction of set up time, cutting the time needed for cleaning and production preparation from 4.6 to 3.3 hours. The second group targeted the reduction of line stops by 40 per cent, slashing filling machine stops by 45 per cent and distribution equipment stops by 35 per cent. The third group drove spare parts cost reduction by 30 per cent. The fourth group focused on a preventive maintenance time reduction by 50 per cent. 

Cost reductions 
In total, the joint efforts of the dedicated teams from Wimm-Bill-Dann and Tetra Pak led to a 14.5 per cent reduction of operational costs. In addition to tangible financial savings, the project resulted in improved staff performance. As Wimm-Bill-Dann Food CEO Mr. Silvio Popovichi (CEO Wimm-Bill-Dann Beverage in 2007) highlighted, the project helped to “change the way people think”. With two successful projects behind them, the customer now has the knowledge and experience to ensure sustainable results in the future.

For more information please contact
Alfonso Castaneda, OCR Product Manager, Tetra Pak Technical Service